PFFA: Tempting 10%+ Yield Preferred ETF, Despite Risks

If you are an income-focused investor, the Virtus InfraCap US Preferred Stock ETF (PFFA) is particularly tempting right now. In particular, interest rates have risen, causing the PFFA share price to fall and the big monthly distribution yield to mathematically rise to over 10.3%. However, before you dive in headfirst, this report reviews the strategy's additional benefits (including active security selection, sector rotation, "modest" leverage, and an emphasis on maximizing yield-to-call, to name a few), as well as the big risks. After reviewing the strategy in detail, this report concludes with a strong opinion on investing.